Profits Rise, UK Acquisition At UBP

Tom Burroughes

20 July 2018

Geneva-headquartered , which has expanded into Asia in recent years as part of its strategy, has reported a net profit of SFr115.3 million ($115.1 million) for the first half of 2018, rising 5.3 per cent from a year earlier.

Assets under management reached SFr128.4 billion, aided by a SFr2.7 billion inflow of new money, with the total AuM up from SFr125.3 billion at the end of 2017.

Operating revenues rose by 6.0 per cent, rising from SFr509.6 million in the first half of 2017 to SFr540.0 million at the end of June 2018. In a more volatile market environment, the decrease in brokerage fees, caused by fewer client transactions, was offset by a rise in management fees from assets managed in funds, as well as discretionary and advisory mandates, together now accounting for over 60% of assets under management, UBP said.

Operating expenses of SFrS41.0 million at the end of June 2018 rose from SFr323.7 million a year earlier. This increase was mainly the result of new hires in the first half of the year, as well as investments in IT and digital. The cost/income ratio stood at 63.1 per cent.

The bank’s Tier 1 ratio – a standard measure of a lender’s financial buffer capital – stood at 28.2 per cent at the end of June, remains well above the minimum requirements stipulated under Basel III capital rules by Swiss financial regulators.

UBP’s footprint has deepened after its acquisition of Coutts’ international assets in Asia and Zurich in recent years.

Acquisition
UBP has agreed to acquire ACPI Investments Limited, an independent London-based investment management company, and the activities of ACPI IM in Jersey.

The transaction is subject to regulatory approval, and is expected to complete during the fourth quarter of 2018. The assets in the acquisition amount to around £2 billion ($2.6 billion)

ACPI is run by Brett Lankester, a former managing director in Goldman Sachs’ UK private wealth management division. It has 70 staff oversees $4 billion assets. It has offices in London, Jersey and South Africa.

The deal is the sign of the times as Swiss wealth managers look to increase their business in London before Brexit. UBS, Lombard Odier and Julius Baer have already expanded their UK operations.

The financial terms of the deal were not disclosed.